Which Indian States Have Highest & Lowest Employment Rates? Here’s The Official Data

One of the key metrics to judge a country’s stature and wellbeing lies in its unemployment rate. As per the unemployment rate data released by Centre for Monitoring Indian Economy (CMIE), the overall employment rate in India is 6.8%. This number is 7.8% for Urban India whereas 6.3% for Rural India. 

Which Indian States Have Highest & Lowest Employment Rates? Here's The Official Data

Now, though unemployment rate is self-explanatory, lets nail down on the technicalities of the same. So, who do you call unemployed?

A person who is above 15 years of age, desirous of work but unable to get the same. So, unemployment rate can be understood as the percentage of working age population which wants work but is unable to get it.

So, one who does not want job cannot be deemed as unemployed, the “wish” part is important. To be counted as unemployed, the must not just be a part of the legal labor force but also should be unable to get it.

Unemployment rate is then that portion of people who are unable to find a job despite being in the working age and demanding work.

Haryana Has Highest, Chhattisgarh has Lowest Rate

Now when we look state wise, then Haryana has the highest unemployment rate of 37.3%. With just 0.4%, Chhattisgarh has the least unemployment rate.

While both figures are astounding, lets take a deep dive into what makes Chhattisgarh the least unemployed state. 

As per government data, the population of the state is 3.21 crore. Out of the total, tribals such as Gond, Kanwar, and Uraon constitute 30.6%.

Several job schemes for its youth have been launched by government. According to the CMIE, this is in line with the central government’s Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Despite the country’s unemployment rate of 7.8%, it is the schemes which are working wonders in the state. 

Sanjeev Prashar, senior faculty at Indian Institute of Management, Raipur said that “Under the overarching objective of uplifting economy, economy, the state government has created new employment opportunities through the implementation of programmes such as Godhan Nyay Yojana, the constitution of Tea-Coffee Board, equal status of fisheries and production of agriculture, Millet Mission and commercial plantation”. 

Also, looking at it urban-rural wise, the rate is acute in urban areas. As per the experts, this can be attributed to reasons like lack of employment opportunities, employers’ hesitation to hire more, and an increased risk aversion among workers in crowded areas.

Besides, there are no MNREGA-like schemes for urban workers in India.

State-wise Unemployment rate

States (India)22-Aug
Andhra Pradesh6
Himachal Pradesh7.3
Jammu & Kashmir32.8
Madhya Pradesh2.6
Tamil Nadu7.2
Uttar Pradesh3.9
West Bengal7.4

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